World Bank head Jim Yong Kim warns US is ‘five days away from a very dangerous moment

Jim Yong Kim has warned the United States they're just 'days away' from causing a global economic disaster unless politicians come up with a plan to raise the nation's debt limit and avoid default. 'We're now five days away from a very dangerous moment. I urge U.S. policymakers to quickly come to a resolution before they reach the debt ceiling deadline. Inaction could result in interest rates rising, confidence falling and growth slowing. If this comes to pass, it could be a disastrous event for the developing world, and that will in turn greatly hurt developed economies as well." Meanwhile the Chinese have lost very little time in making their opinion known, one of the official news outlets, Xinhua, has begun to call for a new global reserve currency to be created given the instability of the dollar; "US fiscal failure warrants a de-Americanized world and the creation of a new reserve currency to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States." The U.S. shouldn’t risk defaulting on its debt because doing so would wreak havoc in the world’s economy and financial markets, said the heads of JPMorgan, Deutsche Bank AG and Pacific Investment Management Co. JPMorgan Chief Executive Officer Jamie Dimon said yesterday during a panel discussion at a financial industry conference in Washington; “The United States cannot default and, in my opinion, will not default. It would ripple through the global economy in a way you couldn’t possibly understand.”http://blog.fxcc.com/market-analysis

Upwards scenario: We are not expecting significant volatility increase today however upside risk aversion is seen above the next resistance level at 1.3581 (R1). Price evaluation above this level would suggest next targets at 1.3599 (R2) and 1.3616 (R3). Downwards scenario: If the price manages to overcome our next support barrier at 1.3551 (S1), we expect to see further market decline towards to our next target at 1.3536 (S2) and then next stop could be found at 1.3517 (S3) mark.

Upwards scenario: On the upside market might get more incentives above the immediate resistive barrier at 1.6003 (R1). If the price manages to overcome it we would suggest next intraday targets at 1.6035 (R2) and 1.6061 (R3). Downwards scenario: Penetration below the support at 1.5964 (S1) is liable to put more downward pressure on the instrument in the near-term perspective. As a result our supportive means at 1.5928 (S2) and 1.5893 (S3) might be triggered.

Upwards scenario: Any upside actions looks limited to resistance level at 98.60 (R1). Surpassing of this level might enable next target at 98.81 (R2) and any further gains would then be targeting final mark at 99.03 (R3) in potential. Downwards scenario: Next support level is seen at 98.10 (S1), any penetration below it might activate downside pressure and enable lower target at 97.89 (S2). Any further market decline would then be limited to 97.62 (S3).